Assume That Stock Market Returns Do Not Resemble a Single-Index

question 45

Multiple Choice

Assume that stock market returns do not resemble a single-index structure.An investment fund analyzes 100 stocks in order to construct a mean-variance efficient portfolio constrained by 100 investments.They will need to calculate ____________ covariances.

• A) 45
• B) 100
• C) 4,950
• D) 10,000
• E) none of these

Appreciate the dynamics of purely competitive markets and how they influence resource allocation and income distribution.

Identify the factors that determine the optimal combination of resources for production in both short-term and long-term perspectives.

Recognize how purely competitive conditions in product and resource markets lead to efficient outcomes in terms of resource use and income distribution.

Understand the principles of resource pricing and its impact on income distribution.